Gold
Gold is one of Australia's largest export earners. It is also the world's second largest producer after China, producing 255 t in 2010.
Western Australia is responsible for 75% of Australia's gold production and also hosts approximately two thirds of Australia's 4 500 t gold resources.
Newcrest Mining is Australia’s largest gold producer. Newcrest owns and operates five mines in Australia. Cadia Valley Operations is the largest gold and copper producer in New South Wales and one of Australia's largest gold producers. Cadia Valley is located in central western New South Wales, Australia, some 250 kilometres west of Sydney. Operations comprise the large, low grade Cadia Hill open pit mine and the higher grade Ridgeway underground mine.
The Cracow mine is located in central Queensland, Australia, approximately 500 kilometres northwest of the city of Brisbane. In 2002, joint venture participants approved development of the underground mine and refurbishment and upgrading of the existing treatment plant. Mine development commenced in December 2003 with first gold production in November 2004. Newcrest manages the operation and exploration activities of the Cracow Joint Venture.
Newcrest Mining’s Telfer operation was officially opened in July 2005. Telfer is located in the Great Sandy Desert in the Paterson Province of Western Australia. The operation is comprised of two mines, Telfer Open Pit and Telfer Underground. Telfer Open Pit contains 2 open pits, Main Dome and West Dome. Open pit mining currently takes place in the Main Dome. The underground mine is located beneath the Main Dome open pit.
Newcrest’s 100% owned Mt Rawdon operation is an open pit gold and silver mine and process plant located in South East Queensland, approximately 80 kilometres south-west of Bundaberg. The project is a high quality, long mine life project producing gold at a very competitive cost for the Australian gold mining industry. Gold production during 2009 was 107,780 ounces.
The Tropicana Joint Venture comprises more than 16,000 square kilometres of tenements stretching over more than 300 kilometres along the western edge of the Great Victoria Desert in Western Australia. The Tropicana Gold Project is part of the Joint Venture, and sits in the northern part of the tenement area, 330 km east north-east of Kalgoorlie. AngloGold Ashanti Australia Ltd, with 70%, manages the Joint Venture, and Independence Group NL has 30%. Along with the deposits that form the basis of the Tropicana Gold Project, there are numerous gold prospects within the joint venture tenements.
As at January 2009 the Mineral Resource contained a total of 5.01 million ounces, with 19.9 million tonnes of Measured material grading 2.38 grams/tonne, 31.0 Mt of Indicated material grading 2.06 g/t and 24.3 Mt of Inferred material grading 1.83 g/t. In August 2009 the partners agreed to commence a feasibility study which was scheduled for completion in the second half of 2010.
Barrick’s Australia region is comprised of 7 operating mines, namely Kalgoorlie (50% interest); Kanowna, Plutonic, and Yilgarn South (Granny Smith, Darlot and Lawlers) in Western Australia and Cowal in New South Wales. At the end of 2010, the Australia Pacific region contained 16.6 million ounces of proven and probable gold reserves1, representing 11% of the Company's total reserve base. The region produced 1.9 million ounces of gold at total cash costs of $613 per ounce2.
In 2011, gold production is expected to be in the range of 1.85-2.0 million ounces at total cash costs of $610-$635 per ounce2. Barrick’s Cowal mine is located in Central New South Wales, approximately 350 kilometres west of Sydney. Cowal is an open pit operation, mined by a fleet of dump trucks, excavators and ancillary equipment. In 2010, Cowal produced 298,000 ounces of gold. Proven and probable mineral reserves as of December 31, 2010 was 2.5 million ounces of gold2.
Darlot, Granny Smith and Lawlers mines comprise the Yilgarn South region, which in 2010 produced 314,000 ounces of gold.
The Kalgoorlie operation is located adjacent to the town of Kalgoorlie approximately 550 kilometres east of Perth, Western Australia. Barrick holds a 50% interest with Newmont Mining Corporation holding the remaining 50% interest. In addition to the Kalgoorlie Super Pit, there are currently three underground mines in production — Kanowna Belle, Raleigh, and Bullant, collectively “Kanowna”.
The Plutonic gold mine is an underground operation located on the Plutonic Well Greenstone Belt, approximately 180 kilometres northeast of Meekatharra in Western Australia. In 2010, Plutonic produced 136,000 ounces of gold.
Newmont Mining acquired its Australian assets as part of the acquisition of Normandy Mining in 2002. The company’s newest Australian asset is the Boddington operation, which was expected to reach full capacity in mid-2010. Boddington is expected to be Australia's largest gold producer, with an operating life of more than 24 years.
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